Sunway Real Estate Investment Trust · MYX:SUNREIT
Sunway Real Estate Investment Trust — Q3 2023 Earnings Presentation
35 slides from Sunway Real Estate Investment Trust's earnings presentation, Nov 16, 2023
Slide 1: Financial Results 3rd Quarter ended 30 September 2023
FINANCIAL RESULTS 3rd Quarter ended 30 September 2023 (FYE 31 December 2023) Date: 16 November 2023
Slide 2: Table of Contents
Table of Contents 1. Financial Highlights (Q3 2023) 2. Financial Results (Q3 2023) 3. Segmental Financial Results (Q3 2023) 4. Market Outlook (Q3 2023) 5. Investor Relations (Q3 2023) Appendix I – Property Performance Empowering Businesses • Curating Experiences • Enriching Lives 2
Slide 3: Financial Highlights (Q3 2023)
FINANCIAL HIGHLIGHTS (Q3 2023) Empowering Businesses • Curating Experiences • Enriching Lives 3
Slide 4: Financial Highlights – Q3 2023
Financial Highlights – Q3 2023 Highlights Q3 2023 Q3 2022 No. of Properties 19 19 Property Value (RM'billion) 8.857 9.010 @ Units in Circulation (Units) 3,424,807,700 3,424,807,700 Unit Price as at 30 Sept 2023/2022 (RM) 1.46 1.40 Market Capitalisation (RM'billion) 5.000 4.795 Net Asset Value ("NAV"
Slide 5: Financial Highlights Q3 2023 vs Q3 2022 (QTD & YTD)
Financial Highlights Q3 2023 vs Q3 2022 (QTD & YTD) Reported in RM’000 Q3 YoY YTD Variance Variance Q3 2023 13.0% The higher Revenue was mainly YTD RM525,168 5.8% or RM60.5m due to the Hospitality segment RM9.6m supported by higher tourist arrivals and the full room inventory in SRH YTD RM464,714 si
Slide 6: Financial Results (Q3 2023)
FINANCIAL RESULTS (Q3 2023) Empowering Businesses • Curating Experiences • Enriching Lives 6
Slide 7: Statement of Comprehensive Income – Consolidated
Statement of Comprehensive Income – Consolidated Q3 2023 Q3 2022 Change YTD 2023 YTD 2022 Change 1. Interest income for Q3 2023 was RM'000 RM'000 % RM'000 RM'000 % higher compared to Q3 2022 Revenue 175,835 166,235 5.8% 525,168 464,714 13.0% resulting from higher placement Property operating expense
Slide 8: Statement of Financial Position – Consolidated
Statement of Financial Position – Consolidated 30 Sept 2023 31 Dec 2022 30 Sept 2023 31 Dec 2022 (Unaudited) (Audited) (Unaudited) (Audited) RM'000 RM'000 RM'000 RM'000 Assets Number of units in circulation 3,424,808 3,424,808 Non-current assets ('000) Investment properties 8,808,734 1 8,622,501 Net
Slide 9: Statement of Cash Flows – Consolidated
Statement of Cash Flows – Consolidated Cumulative Quarter ended 30.09.2023 30.09.2022 1 Net cash from operating activities for Q3 2023 of RM340.1 * million mainly comprise of cash receipt from lessees and RM'000 RM'000 tenants partially offset by cash paid for operating expenses and Cash flows from
Slide 10: Financing Profile as at 30 September 2023
Financing Profile as at 30 September 2023 Utilised Facility Limit Amount RM'mil RM'mil Revolving loan (USD) USD 75 220.5 1 2 Commercial Paper 3,000.0 480.0 Unrated MTNs 10,000.0 1,100.0 3 Total Current 1,800.5 2 Revolving Loan (RM) 2,000.0 1,670.0 Total Non Current 1,670.0 Unamortised transaction co
Slide 11: Financing Profile as at 30 September 2023 (Cont’d)
Financing Profile as at 30 September 2023 (Cont’d) Empowering Businesses • Curating Experiences • Enriching Lives 11
Slide 12: Segmental Financial Results (Q3 2023)
SEGMENTAL FINANCIAL RESULTS (Q3 2023) Empowering Businesses • Curating Experiences • Enriching Lives 12
Slide 13: Retail Segment : Q3 2023
Retail Segment : Q3 2023 Retail Revenue Retail NPI 1% RM 111.8 million (Q3 2023) 2% RM 81.8 million (Q3 2023) vs RM 110.3 million (Q3 2022) vs RM 80.5 million (Q3 2022) 13% RM 349.0 million (YTD Q3 2023) 8% RM 241.2 million (YTD Q3 2023) vs RM 310.1 million (YTD Q3 2022) vs RM 222.4 million (YTD Q3
Slide 14: Hotel Segment : Q3 2023
Hotel Segment : Q3 2023 The Hotel segment’s revenue and NPI increased by more than 50% in Q3 2023 1 underpinned by improvement in the segment’s average occupancy rate of 63% in YTD Q3 2023 (YTD Q3 2022: 54%). The improvement in revenue was also contributed by the full 460-room inventory for Sunway R
Slide 15: Office Segment : Q3 2023
Office Segment : Q3 2023 Office Revenue Office NPI 3% RM 20.7 million (Q3 2023) 0% RM 12.8 million (Q3 2023) vs RM 20.0 million (Q3 2022) vs RM 12.8 million (Q3 2022) 4% RM 61.6 million (YTD Q3 2023) 0% RM 39.2 million (YTD Q3 2023) vs RM 59.2 million (YTD Q3 2022) vs RM 39.2 million (YTD Q3 2022) R
Slide 16: Services Segment : Q3 2023
Services Segment : Q3 2023 Services Revenue Services NPI -13% RM 13.8 million (Q3 2023) -13% RM 13.8 million (Q3 2023) vs RM 15.8 million (Q3 2022) vs RM 15.8 million (Q3 2022) -3% RM 45.7 million (YTD Q3 2023) -3% RM 45.7 million (YTD Q3 2023) vs RM 47.4 million (YTD Q3 2022) vs RM 47.4 million (YT
Slide 17: Industrial & Others Segment : Q3 2023
Industrial & Others Segment : Q3 2023 Industrial & others segment recorded stable revenue in Q3 2023 as the rent review for Sunway REIT Industrial – Shah Alam 1 will be conducted every three years, with the last review on 1 January 2022 in accordance with master lease agreement. However, NPI of the
Slide 18: Market Outlook (Q3 2023)
MARKET OUTLOOK (Q3 2023) Empowering Businesses • Curating Experiences • Enriching Lives 18
Slide 19: General Outlook
General Outlook Indicator 2023 (F) Q3 2023 Q2 2023 Q1 2023 2022 2021 Gross Domestic Product (GDP) 4.0% 4 3.3% 5 2.9% 1 5.6% 1 8.7% 1 3.1% 1 (y-o-y) (revised from 4.5%) Consumer Price Index (y-o-y) 2.5% to 3.0% 4 1.9% 2 2.8% 2 3.6% 2 3.3% 2 2.5% 2 Overnight Policy Rate (OPR) 3.0% 3 3.0% 3.0% 2.75% 2.
Slide 20: Segmental Outlook
Segmental Outlook Retail Segment After experiencing a contraction of -4% y-o-y retail sales in Q2 2023, the Retail Group Malaysia (RGM) anticipates that Q3 2023 performance will remain conservative with a modest growth rate of 1.4%. Sunway REIT’s retail segment performance for Q3 2023 is consistent
Slide 21: Segmental Outlook
Segmental Outlook Hotel Segment The average occupancy rate for the hotel segment strengthened to 63% for YTD Q3 2023, mainly attributed to the strong pick-up in domestic travelers and gradual recovery in international travelers as well as increased demand in MICE activities. In tandem with the impro
Slide 22: Segmental Outlook
Segmental Outlook Office Segment The Office segment is expected to continue to remain in a state of oversupply on the back of continuous incoming supply. Against the backdrop of supply outstripping demand, it is projected that rental rates and occupancy rates for the office segment will remain chall
Slide 23: Investor Relations (Q3 2023)
INVESTOR RELATIONS (Q3 2023) Empowering Businesses • Curating Experiences • Enriching Lives 23
Slide 24: Unit Price Performance from IPO to Q3 2023
Unit Price Performance from IPO to Q3 2023 Unit Price Performance of Sunway REIT versus Benchmarks (8 July 2010 – 30 September 2023) Sunway REIT + 62.2% FBM Top 100 Index + 14.3% FBM KLCI + 8.2% Sep 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Performance Statistics IPO to Q
Slide 25: Unitholders’ Composition (as at 30 September 2023)
Unitholders’ Composition (as at 30 September 2023) Foreign 7.2% Retail 7.7% Sunway Berhad 40.9% Institutions & Corporates 51.4% Domestic 92.8% September 2023 June 2023 Q-o-Q Change No of unitholders 31,864 29,371 +2,493 (+8.5%) Retail unitholders 7.7% 6.7% +1.0% Foreign unitholders 7.2% 9.4% -2.2% S
Slide 26: Analysts Recommendation (as at September 2023)
Analysts Recommendation (as at 30 September 2023) Average Consensus 29.5 Target Price = RM1.68 26.0 Target Price as at 30 Sep 2023 (RM) 23.3 Upside / Downside to unit price as at 30 Sep 2023 (%) 19.9 17.8 16.4 16.4 13.7 13.0 11.6 9.6 9.6 9.6 9.6 6.2 5.5 1.89 1.84 1.80 1.75 1.72 1.70 1.70 1.63 1.60 1
Slide 27: Comparative Yields for Various Assets
Comparative Yields for Various Assets (as at 30 September 2023) 6.79%2 6.58%1 5.35%5 3.97%3 3.00%6 2.80%4 Sunway REIT M-REITs 10-Year MGS Fixed Deposit EPF Yield OPR Note: 1 Distribution yield is computed based on consensus FY 2023 DPU of 9.60 sen and unit price of RM1.46 as at 30 September 2023 (So
Slide 28: Appendix I: Property Performance (YTD Q3 2023 YoY Analysis)
APPENDIX I: PROPERTY PERFORMANCE (YTD Q3 2023 YoY Analysis) Empowering Businesses • Curating Experiences • Enriching Lives 28
Slide 29: Average Occupancy Rate (YTD Q3 2023) – Retail
Average Occupancy Rate (YTD Q3 2023) RETAIL The Retail segment recorded an improved average occupancy rate stood at 97% in YTD Q3 2023, which was supported by the commencement of new tenants and replacement of tenants across our retail malls. SunCity Ipoh Hypermarket is occupied by single tenant, TF
Slide 30: Projected Lease Expiry Schedule – Retail
Projected Lease Expiry Schedule RETAIL WALE = 1.46 years Sunway Pyramid Mall Sunway Carnival Mall SunCity Ipoh Sunway Putra Mall Based on the total net Based on the total NLA of 154,784 Hypermarket Based on the total NLA of lettable area (NLA) of sq. ft. due for renewal in 2023, a Occupied by single
Slide 31: Average Occupancy Rate (YTD Q3 2023) – Hotel
Average Occupancy Rate (YTD Q3 2023) HOTEL WALE = 6.44 years The Hotel segment recorded 9% growth in YTD Q3 2023 as compared to YTD Q3 2022, mainly contributed by improved performance across all hotel properties driven by stronger pick up in tourism activity, demand from corporate and MICE activitie
Slide 32: Average Occupancy Rate (YTD Q3 2023) – Office
Average Occupancy Rate (YTD Q3 2023) OFFICE The Office segment recorded a marginal drop in average occupancy rate in YTD Q3 2023, primarily due to the termination and downsizing of tenants in Menara Sunway and Sunway Putra Tower, partially offset by the commencement of new tenants in Sunway Tower. E
Slide 33: Projected Lease Expiry Schedule – Office
Projected Lease Expiry Schedule OFFICE WALE = 1.24 years Menara Sunway Sunway Putra Wisma Sunway Sunway Tower Tower Sunway Pinnacle Based on total NLA Based on total NLA of Based on total NLA of Based on total NLA of Based on total NLA of of 73,615 sq. ft. due 14,462 sq. ft. due for 151,258 sq. ft.
Slide 34: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Sunway Real Estate Investment Trust (“Sunway REIT”) and no part of it shall form the basis of, or be relied on in conn
Slide 35: Thank You
Thank You Empowering Businesses • Curating Experiences • Enriching Lives 35
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